New Stimulus Package – Now You Can be a JobKeeper instead of a JobSeeker – SUMMARY

In the future, two new government programs will become associated with COVID-19.

First, JobSeeker, announced little more than a week ago, allowed people to apply to Centrelink to receive unemployment benefits and a tax-free Coronovirus supplement, to a maximum amount of about $1,100 per fortnight. The Coronavirus supplement is not taxable income.

And now, JobKeeper, unveiled at 5pm last night, to retain employees and pay benefits to sole traders, for businesses whose turnover has been affected by the current health crisis.

JobKeeper is currently a government policy announcement that has not been legislated. The advice provided today is based only on the information that has been made available by Treasury and the ATO, but a brief summary of the scheme is as follows:

the program will run for 6 months;

it will apply to businesses, including sole traders, partnerships and trusts established on or before 1 March 2019 and 1 September 2019;

eligible businesses must see a fall in turnover of 30% in any month between March and September this year compared to a year ago;

eligible employees are full-time and part-time workers as well as casual employees that have been employed for at least 12 months by one employer;

if a worker had been let go since 1 March and they otherwise qualified as an eligible employee, they may be rehired;

eligible employees will receive $1,500 per fortnight, which is taxable income, from eligible employers; and

·subsidy payments from the government to eligible employers will start from the first week of May and will be backdated to 1 March.

In relation to the last point, many self-employed artists, writers, musicians and film and television professionals may only start to see their income fall by more than 30% compared to a year ago, from April. If that is the case, subsidy payments may not be forthcoming until the first week of June.

As announced, an eligible employee currently earning less than $1,500 per fortnight will be paid $1,500 per fortnight under the scheme. The employer is not allowed to pocket the difference. It should also be noted that superannuation liabilities for employees will continue for their ordinary time earnings. You can only receive one JobKeeper payment and you cannot receive JobKeeper and JobSeeker at the same time. As an example, John is employed on a permanent part-time basis by an engineering firm and he plays in a band on the weekend as a sole trader.

if the engineering firm is eligible for the JobKeeper subsidy, he may continue to receive his wages from them to a minimum amount of $1,500 per fortnight; or

if he qualifies as a sole trader musician and the engineering firm does not, he may receive a JobKeeper payment direct from the government.

As soon as the JobKeeper legislation is passed, I will provide a comprehensive overview of the scheme.

Recent Articles:

'I wanted to say thank you to you and your team for all your support during this difficult time. I’ve been finding this period really difficult but the help and knowledge you’ve shown has been a real comfort. Sincere thanks!'

MATT, SYDNEY
TELEVISION PRODUCER

A huge thank you to you and your team for your exceptional work during this period. Most people I know are completely unaware of the stimulus package as their accountants haven’t informed about any entitlements. You and your team have been so proactive in passing on this vital information that will literally be the difference between surviving this downturn and going under. Thank you!'

KELLY, MELBOURNE
COMMERCIAL PHOTOGRAPHER

My cleaner closed a door into the middle of a Leonard Brown painting I was storing in my office, tearing the canvas and making the painting unrepairable. Because the artist has a higher gallery price than auction price, my insurance company only offered me a quarter of the painting's cost. Michael produced a report to verify the history of the artwork and its uniqueness, and the insurance company then paid me the correct amount in compensation.

JOHN, BRISBANE
LAWYER

As an art teacher, I have a wage of more than $40,000 but as an exhibiting artist I sometimes spend more on materials than I receive in sales. Particularly when I am preparing for a big show. I did not realise, until Michael explained it to me, that the loss on my practice could not be deducted from my teaching wage unless I met certain conditions. Michael was able to work out the conditions that allowed me to claim the loss on my artist practice and the additional refund came in handy for my next show.

REGINALD, SUNSHINE COAST
VISUAL ARTIST

As an art teacher, I have a wage of more than $40,000 but as an exhibiting artist I sometimes spend more on materials than I receive in sales. Particularly when I am preparing for a big show. I did not realise, until Michael explained it to me, that the loss on my practice could not be deducted from my teaching wage unless I met certain conditions. Michael was able to work out the conditions that allowed me to claim the loss on my artist practice and the additional refund came in handy for my next show.

REGINALD, SUNSHINE COAST
VISUAL ARTIST

I was referred to Michael by a musician friend, who is one of his clients. My former accountant had prepared my return for the first year where I had made good money and told me I had to pay $12,000 income tax. Michael explained that there were special tax rules for musicians and processed my return so that I did not have to pay the tax my former accountant said I had to pay.

MARCELLO, SYDNEY
MUSICIAN

This return is literally life changing. Paying off debt and starting savings. Thank you so much. I've recommended you to a whole bunch of people and even suggested those who've already had their tax done to check with you if it's worth an amendment. Honestly, between you and this barefoot investor book, I'm finally feeling more in control of my finances. Thanks so much!

SAMANTHA, MELBOURNE
FILM PRODUCER

My singing career was taking off but I was worried about when I had to register for GST and how much tax I had to pay. Michael explained that I only had to register when my sales exceeded the threshold for two years running and advised that I should have my accounts prepared each three months to work out my income tax in advance. I now feel in charge of my finances and I am easily handling the GST and income tax obligations.

MICHELLE, SYDNEY
PERFORMER

Through my accountant I was referred to Michael to assist with the transfer of three Polly Courtin paintings from my super fund to me because I did not want to pay for storage of the works after 30 June this year. Michael produced a valuation report that allowed me to do just that and he also told me I could claim the artworks as a depreciation claim. Fantastic.